Arbitraje fiscal internacional

Table 1 Performance variables of Livestock for Milk Production in Egypt

Type % of cattle and Buffalo breed % milking Heads in total herd yield/ Milking head/year (Kg) % of Bulls in total herd % Replacement heifers in total herd Domestic Cattle 36% 38.90% 600 0.50% 15.90% Exotic Breeds 2% 41.00% 4500 1.10% 16.00% Cross Bred 11% 39.20% 2100 0.50% 15.30% Total Cattle 49% 39.20% 1084.3 0.50% 15.80% Buffalo 51% 44.10% 1340 0.50% 14.00% Total(cattle and Buffalo) 100% 41.70% 1743.8 0.50% 14.90%

Sheep 57% 42.70% 50 6.20% 15.10%

Goats 43% 36.10% 12.5 9.80% 16.30% Total (Sheep and Goats) 100% 39.90% 34 7.70% 15.60%

Source: Calculated from:

Ministry of agriculture and land reclamation (2010) Central Administration economic affairs sector of the agricultural economy, "statistics of livestock and poultry and fish"

.The food and Agriculture Organization of the United Nations (2011) The statistical database, agriculture, production, primary agricultural products.

Table 2 Milk Equivalent of Dairy Foreign Trade

(tons) 662,624 US$ 429,196,000 Imports $/ton 648 (tons) 541,484 US$ 472,523,000 Exports $/ton 873 $1000 43,327,000 Trade Balance

% (Exports Value/ Imports Value) 110% Source: Compiled and Calculated from:

Table 3 Milk Supply Structure in Egypt, 2009

Milk Supply source Tons of Liquid _Milk % Goat milk Production 16,107 0.24%

Sheep milk 107,886 1.61%

Stall (Barns) Buffalo Flocks 767,385 11.47% Commercial Specialized farms (Buffalo + Cow) 354,178 5.29% Traditional System Production from Buffalo 2,629,769 39.31% Traditional System Production from Cows 2,151,629 32.16% Traditional System Production from cows and buffaloes 4,781,398 71.48% Total Production 6,026,953 90.09% Total Imports (1) 662,624 9.91% Total Supply 6,689,577 100.00% Total Exports (1) 541,484 8.09% Milk for Rearing (2) 1,265,061 18.91% Net Milk Production for food Consumption 4,883,032 72.99%

Farm household dairy products consumption from home production 1,434,419 21.44% Farm household liquid milk consumption from home production 1,099,721 16.44% The home processed dairy products sold 956,280 14.30%

The Waste from Production up to Processing Stage 413,207 6.18% The Liquid Milk sold commercially 342,792 5.12%

Waste During Processing 88,489 1.32% Produced Cheese Commercially 548,124 8.19% 1) Imports and exports are in the form of liquid milk equivalent.

(2) Estimated by Ministry of Agriculture of Egypt, Livestock Sector for animal Production. All goats and sheep milk is for suckling except 5000 tons are devoted for mutton cheese processing

(3) The waste here is the FAO estimates which is a larger proportion than 7% as shown from the panel survey (4) The quantity available for human food consumption, after deduction of other usages above

(5) It is derived from the estimated cheese supply of 940,154 tons by multiplying by technical coefficients (6) derived from estimates of (2)

Source: Compiled and calculated from: Table

FAOSTAT | © FAO Statistics Division 2011 | 26 October 2011

Ministry of Agriculture of Egypt, (2011), Records of the Livestock Sector for animal Production

Central agency for public Mobilization and statistics (CAPMAS) (2011),"Bulletin of Animal Wealth Statistics", Soliman , Ibrahim, Mashhour, A. and Gaber, M. (2007) "Final Report of the Research Project: Livestock Marketing systems in Egypt",

Central agency for public Mobilization and statistics (CAPMAS) (2011), Annual bulletin of Trade Statistics of Egypt, National Academy of Scientific Research and Technology, The 3 years research program (2004=2007), Cairo, Egypt. 550 Pages.

Table 4 Spread of the Consumer's dollar spent on Fresh Milk to Urban Market

Cow Milk Buffalo Milk Marketing Costs and Profit Margins

$ / Kg % $ / Kg % Production Costs 0.433 62.94 0.371 44.83 Producer's Market Margin 0.106 15.46 0.255 30.88 Village Trader's Marketing Cost 0.048 6.93 0.079 9.61 Village Trader's Profit Margin 0.043 6.30 0.025 3.01 Retailers Marketing cost 0.038 5.59 0.043 5.18 Retailer's Profit Margin 0.019 2.77 0.054 6.49 Consumer Price 0.688 100.00 0.827 100.00 The applied exchange rate was 1-US$ = L. E.5.59, Egyptian Central Bank in July, 2011

Table 5 Spread of the Consumer's dollar spent on Milk Adulterated by the Wholesaler

Cheating by mixing Cow with Buffalo Milk

The fraud of Buffalo milk by skimming 3% Fat

Marketing costs and Profit Margin

$/Kg % $/Kg %

The costs of production 0.433 52.35 0.371 44.83

Producer's profit margin 0.106 12.86 0.255 30.88 Village Trader Marketing costs 0.048 5.76 0.079 9.61

Additional cost of extracting 3% fat 0.0 0.0 0.015 1.78 Wholesaler's profit margin from raw milk 0.183 22.07 0.010 1.23 Wholesaler's profit margin from 3% fat 0.0. 0.0 0.204 24.70 Retailer's marketing costs 0.038 4.65 0.043 5.18 Retailer's profit margin 0.019 2.30 0.054 6.49 Consumer's Price 0.827 100.00 0.827 100.00

Source: Calculated from The Sample survey Data conducted in 2010 for the agricultural Year 2010/201

Table 6 Spread of the Consumer's dollar spent on Fresh Milk Sold to Village Market

Cow Milk Buffalo Milk Marketing Costs and Profit Margins

$ / Kg % $ / Kg %

Production cost 0.446 71.20 0.322 45.00 Producer's market margin 0.180 28.80 0.394 55.00

Consumer Price 0.626 100.00 0.716 100.00 Source: Calculated from The Sample survey Data conducted in 2010 for the agricultural Year 2010/20111

Table 7 Spread of the Consumer's dollar spent on Dairy Products Processed on Farm and sold in Village Market*

Buffalo Milk Cow Milk

Traditional technique By using separator By using separator Marketing Costs and Profit Margins

$ / Kg % $ / Kg % $ / Kg %

Production cost 0.291 35.43 0.287 35.16 0.337 10.87 Processing cost 0.128 15.58 0.169 20.69 0.167 5.39 Value of butter produced 0.406 49.42 0.481 58.91 0.205 37.06 Value of cheese produced 0.416 50.58 0.335 41.09 0.349 62.94 profit margin of processing 0.403 48.99 0.360 44.15 0.050 9.08 Total value of processed products 0.822 100.00 0.816 100.00 0.554 100.00

Source: Calculated from The Sample survey Data conducted in 2011 for the agricultural Year 2010/2011 *It does not mean that some of these products are delivered to urban market

Table 8 Spread of the Consumer's dollar spent on Buffalo Milk from Stall System

Marketing Costs and profit Margins $ / Kg % Production cost 0.524 49.10

Marketing cost 0.064 6.00

Producer's profit margin 0.480 44.90

Consumer Price 1.068 100.00

Table 9 Spread of the dollars acquired by the spent on Milk Sold by Wholesalers to Dairy Plants

Marketing Costs and Profit Margins $ / Kg %

Purchase price of kilogram of crude milk(1) 0.635 87.01 Marketing cost of wholesale stage 0.079 10.89

Sale value of skimmed fat from buffalo milk(2) 0.086 11.76 Wholesaler's profit margin without value of skimmed fat 0.015 2.10

Wholesaler's profit margin with value of skimmed fat 0.101 13.87 Consumer Price at plant gate 0.730 100.00 1) Milk is mixture of: (0.5 cow milk × 0.590 US$) + (0.5 buffalo milk × 0.680US$) = 0.635$ /kg

(2) Value of 3% fat skimmed from buffalo milk = 0.5 buffalo milk × 0.03 × 5.72 US$ = 0.08588 US$ Source: Calculated from The Sample survey Data conducted in 2011 for the agricultural Year 2010/2011

Table 10 Spread of the Consumer's dollar spent on Milk Processed in Small dairy Plant

Fresh Cheese Istanbul Cheese Marketing Costs and Profits

$ / Kg % $ / Kg % Purchase price of kilogram of crude milk 0.665 38.64 0.665 28.68 Processing cost 0.526 30.54 0.225 9.71 Packaging cost 0.193 11.22 0.166 7.17 Transportation cost for refrigerators 0.00 0.00 0.077 3.31 Cost of storage 0.00 0.00 0.342 14.74 Total of operating cost 0.719 41.76 0.811 34.94 Sale price to retailer 1.367 79.39 1.823 78.55 Profit margin of processing stage 0.138 8.00 0.492 21.20 Cost of retail stage 0.047 2.72 0.047 2.00

profit margin of retail stage 0.153 8.88 0.306 13.18

Consumer Price 1.722 100.00 2.321 100.00 Source: Calculated from The Sample survey Data conducted in 2011

Table 11 Spread of the Consumer's dollar spent on Dairy Products of Modern Dairy Plant

Fresh Cheese Istanbul Cheese Marketing Costs and Profit Margins

$ / Kg % $ / Kg % Milk production cost in specialized dairy farms 0.437 25.39 0.437 18.84 Transportation cost to collection points 0.008 0.45 0.008 0.33 Producer's profit margin in specialized dairy farms 0.116 6.74 0.116 5.00 Sale price to collection points 0.561 32.57 0.561 24.18 Collecting cost and transportation to Processing plant 0.104 6.07 0.104 4.50

Purchase cost of kilogram of crude milk 0.665 38.64 0.665 28.68 Processing cost 0.526 30.54 0.225 9.71

Packaging cost 0.336 19.53 0.166 7.17 Transportation cost for refrigerators 0.000 0.000 0.077 3.31 Cost of storage 0.000 0.000 0.342 14.74

Total of operating cost 0.862 50.07 0.811 34.94 Sale price to retailer 1.367 79.39 1.823 78.55

Profit margin of processing stage 0.099 5.75 0.492 21.20 Cost of retail stage 0.047 2.72 0.151 6.51 profit margin of retail stage 0.153 8.88 0.306 13.18 Consumer Price 1.722 100.00 2.321 100.00 Source: Calculated from The Sample survey Data conducted in 2011

Table 12 Cost Structure of Processing of Common Cheese Types in Egypt

Type of cheese Vita Fresh _cheese White WHITE _STORAGE PROCESSED ISTANBUL _CHEESE

Cost Item % % % % % Permanent Labor 33.79 40.29 38.51 38.72 41.34 Depreciation of equipment 30.24 26.18 25.79 27.01 29.39 Depreciation of Buildings 5.22 5.99 5.81 8.09 5.77 Taxes 5.32 8.2 12.83 7.96 6.99 Rent 9.22 9.59 9.15 3.61 3.68 Water Use 5.18 1.81 1.41 9.8 8.1 Electricity 8.36 6.3 4.47 2.65 2.9 Maintenance 2.66 1.64 2.03 2.15 1.82 Total Fixed Costs 100 100 100 100 100

Raw Milk 69.57 72.93 76.87 95.94 91.69 Packaging 14.40 19.32 13.28 0.00 0.00 Temporary employment 1.19 0.79 0.53 1.2 1.79 Storage 0.00 0.00 2.18 0.00 3.13 Using Warehouses 0.00 0.00 0.00 0.00 0.64 Others 14.84 6.96 7.14 2.86 2.75 Total variable costs 100 100 100 100 100